Loan Money To A Company To Purchase Buy To Let Properties

Can you loan money from one limited company to another in order to buy a residential buy to let property investment?

In this video, you will learn about
- How do you make a loan from one limited company to another?
- What happens to the loans between each limited company?
- Are there any downsides of loaning money from one limited company to another limited company?

#Tax #HMRC #Property

[cvathota]

I thought the video explains about the lending between 2 limited companies?
Rather than director lending to Limited company!!

[babesgurung]

Can I repay director loan I use to pay for deposit before I pay corporation tax? Or I pay only from profit I make?

[AdilNagu]

How can I show a deposit for a limited company I own while transferring a property to myself? For example, if I need to show a £90k deposit for a property valued at £300k, and I have £150k remaining on the mortgage with £150k in equity, how can I use £90k of that equity as the deposit without needing to put in £90k in cash?

[kushmuthy]

Thanks for this! I saw the following in an Article (extract):

'You can choose how much interest to charge and it will count as:


a business expense for the company, and
personal income for you

You will need to report this income on your Self Assessment tax return. Additionally, the company must:

pay you the interest less the basic rate of Income Tax (20%)
report and pay the Income Tax to HMRC every quarter using form CT61'

Question: Why does the company pay basic rate of Income Tax on the interest payable? Technically it would not be a fully deductible business expense right if it has to pay 20% on it?

Kind regards,

Kush

[maxmaxmaxmax-pm]

How about I get loan from the bank and then lend it to my company with an interest? Does the interest I pay to the bank tax-deductible for my personal income tax?

[overfinch]

What interest rate can u reasonably charge?

[Emilyhkuk]

How about instead of taking money out from main company and lend it to another BTL company? Is it still possible?

[andrewfallon]

Is it a repayment loan or interest only ?